We blinked our eyes and Chinese New Year is upon us! Doesn’t it feel like 2022 is already going by too quick for comfort?
All over the Amazon world, things get a little quiet. According to East West Design-Manufacturing-Distribution, factories and businesses usually shut down 10 days before Chinese New Year (aka CNY). This lull allows workers to travel home to be with their families. They celebrate the holiday, then take time to travel back to the coastal cities for work. All in all, most factories close for a total of 3 weeks. Many manufacturers rush to ship products well in advance before everything shuts down. If your products don’t make it on time, they’ll be bumped to the next available date…And that might be after CNY is over.
It goes without saying that going out of stock during CNY is a massive nightmare, which is why most savvy sellers start preparing months in advance for that month-long lull. Then, during CNY, sellers get pretty quiet, and occupy themselves by monitoring stocks and attending to customers.
That’s not such a bad thing.
The Benefits of Experience and Dealing with CNY
It might surprise you to hear that during CNY, we get a steady work flow in YLT. Sellers who want to expand to international marketplaces already have their products in stock. Naturally, many sellers will go quiet, because they can’t replenish their stock or even talk to their suppliers in China.
That’s why it’s good to think well in advance when CNY approaches in the calendar. As they say, experience comes with age. Most experienced sellers would be better prepared for this time of year; newer and smaller sellers tend to sell out their stock very fast. This 2022 though, everyone is cutting expenses, so we anticipate that sellers are very careful about their stock, and trying hard not to be left without it before CNY.
Left without stock during CNY? The bad news is you won’t be able to do anything about it until the Chinese New Year celebration comes to an end.
Time to Diversify to Reduce Risk.
PPC is getting more expensive. Supply chain is an issue. It’s getting harder and harder to sell. The challenges an Amazon seller faces seem to grow every month.
It’s time to think about risk diversification in your manufacturing, so you’re not caught by surprise when CNY comes around. Part of that could mean sourcing from India. Or sourcing from Vietnam. Or even sourcing from Mexico! You could keep up the relationship you’ve nurtured with your Chinese manufacturers, but think about sourcing from other countries as well so you don’t panic every CNY – and can enjoy the festivities instead!
Think about sourcing from India. India Sourcing Network is an award-winning resource for all things India. The website, podcast, and Facebook support group help subscribers connect with Indian suppliers, understand the best practices in developing relationships with them, and sourcing the best products that will make a splash on Amazon.
Have you considered sourcing from Vietnam? Jim Kennemer can help you out. According to Sourcing Hub, check out Taiwan’s electronics, plastics, hand tools, cutlery, toys and games, fabrics and synthetic leather, and more. Taiwan also observes CNY, but not as long as China does.
What about sourcing from Mexico? Three massive Amazon influencers are putting up The Mexico Sourcing Trip this April. Join Tim Jordan, Amy Wees, and Norm Farrar as you meet suppliers, learn best practices in sourcing from Mexico, and have an amazing good time.
Other countries with robust manufacturing industries that a seller might find interesting include:
- Local suppliers in your area